Maximising CGT allowance

woodmd2

Hi,

I have a company share scheme maturing in August and want to maximise what I can sell without paying CGT.

I understand that I can place £11,500 of them into an ISA within a fixed number of days of them maturing. I can also then sell others to a gain of approx. £10,500. I can also sell the ISA held ones shortly after giving me approx. £22,000.

1st question is, are my assumptions broadly correct?

2nd question is someone is telling me that I can transfer half of my shares to my wife without incurring CGT, where she can then replicate what I have done.

Would that give me approx. £44k without paying CGT in that year?

Thanks

CLAPTON

you can indeed transfer shares to your wife: she will not benefit from the ability to transfer them into an ISA but she has her own 10,900 cgt allowance.

Davidwatty

I am in the same situation, so just to clarify you can transfer up to your isa limit into an isa then sell them immediately and also sell other shares up to your cgt limit, thus not paying any cgt on about 22k of gains made within the same tax year?

CLAPTON

Davidwatty wrote: »

I am in the same situation, so just to clarify you can transfer up to your isa limit into an isa then sell them immediately and also sell other shares up to your cgt limit, thus not paying any cgt on about 22k of gains made within the same tax year?

assuming it's a HMRC approved scheme then yes you can transfer your ISA limit (assuming otherwise unused ) and yes you can sell other shares with the gain up to 10,900 (this years cgt allowance)

and if married you can transfer shares to wife and she can use her cgt allowance too.

JasonPr

CLAPTON wrote: »

and if married you can transfer shares to wife and she can use her cgt allowance too.

Do you know how I can transfer shares to my wife when the investment account is only in my name? I heard a declaration of trust can be used but I've no idea how this works.

CLAPTON

JasonPr wrote: »

Do you know how I can transfer shares to my wife when the investment account is only in my name? I heard a declaration of trust can be used but I've no idea how this works.

spouses can transfer assets between each other tax free

JasonPr

CLAPTON wrote: »

spouses can transfer assets between each other tax free

Yes, I'm aware of that but how do I document the transfer when I leave the shares gifted to my wife in an account that only has my name on it.

Thrugelmir

You'll need to complete a stock transfer form and lodge it with the company's registrars.